operating expense

Operating Expense

The essential things that a company must purchase in order to maintain business.

Notes:

For example, the payment of employees wages are an operating expense.

Also known as OPEX.

See also: Expenses, Non-Operating Cash Flows, Operating Income, Operating Margin

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operating expense

An expense incurred in transacting normal business operations. Operating expenses include administrative and selling expenses but exclude interest, taxes, and cost of goods sold.